Pictured above: Katie Teasdale

Birmingham and Solihull business leaders are urging the Monetary Policy Committee to maintain interest rates at their current level on Thursday and not to use an increase in rates as a tool for getting us out of the economic crisis.  

Katie Teasdale, head of policy at Birmingham Chamber of Commerce and Industry (BCI) said: "Increasing interest rates will hit every area of business.  It will stifle investment and employment.  We need to encourage companies to invest, take more risks and innovate.

"Although there have been reports of green shoots of recovery in both the property and manufacturing industries, the situation remains fragile and the risks of a relapse cannot be ignored. 

"Even keeping interest rates low, we expect the UK GDP figures to show a modest growth and certainly be below the historical average.  Thereafter, we expect modest increases to 1% before the end of 2010, and to 2.50% by the end of 2011 to ensure that CPI inflation stays on target.

"We are looking to the new coalition government to support British industry with favourable announcements in the emergency budget on 22 June.  While we understand the need for major cuts to reduce the UK deficit we need to restore business investment.  

"The creation of a positive tax environment that enables businesses to create jobs and wealth as well as policies which enable a new culture of enterprise, entrepreneurship, risk taking and innovation is paramount to creating a more stable economy in the future."